Tourism Satellite Account - United Nations · Regional Workshop on the Compilation of the Tourism Satellite Account June 20, 2017 ... catering, agents and promoters

Telling Canada’s story in numbers

Demi Kotsovos

National Economic Accounts Division

Statistics Canada

Regional Workshop on the Compilation

of the Tourism Satellite Account

June 20, 2017

Tourism Satellite Account: Demand-Supply Reconciliation

www.statcan.gc.ca

Outline

• Setting the framework

• Understanding data sources

• Defining tourism commodities

• Defining tourism industries

• Measuring tourism domestic

supply

• Reconciling supply and

demand

• Measuring tourism’s

economic contribution

06/07/20172 STATISTICS CANADA • STATISTIQUE CANADA

06/07/20173

Understanding data sources

STATISTICS CANADA • STATISTIQUE CANADA

• What is the source of your data?• administrative source

• business survey

• household survey

• tax data

• How reliable are they?• Coverage or timing issues?

• Census versus sample?

• Regular versus irregular?

• Are they available on consistent basis over time?

• Do definitions match the concepts?

• What was the purpose behind the data• Are data designed for one purpose but used for another?

• How large is the demand / supply discrepancy?

• What do other indicators reveal?

Measurement Framework

Culture, recreation and

Entertainment surveys

Canadian

Tourism

Satellite

Account

Survey of

Household

Spending

Travel Survey

of Residents

of Canada

International

Travel

Survey

Demand surveys

Supply and Use

Tables

Travel Arrangement

Services survey

Food and beverage

survey

Accommodation

survey

Transportation

surveys

Supply surveys

System of

National

Economic

Accounts

Other supply surveys

(including goods)

)

06/07/20175

Tourism Commodities

STATISTICS CANADA • STATISTIQUE CANADA

• Tourism commodities in CTSA• comparable with list in IRTS 2008

• Exclude: vacation homes, tourist guide/information services

• Some are country-specific for Canada• vehicle fuel, repairs and parts, motion picture exhibition

• significant part of the demand in Canada comes from visitors

• Include tourism-single purpose consumer durable goods• Comparable with list in TSA:RMF

• Except: planes and boats

• Also include non-tourism commodities often purchased by visitors

TSA commodities reflect merging of demand

and supply side classifications

• Limited details on demand side

• Some differences in commodity categories

• Considerable detail on supply side

• Need to convert to a common commodity classification for

the TSA

• This requires:• Splitting out more detail on the demand side

• Aggregating details on the supply side

06/07/2017STATISTICS CANADA • STATISTIQUE CANADA6

Tourism spending by Canadians in Canada, 2012


Travel Survey of Residents of Canada expenditure

categories

millions of dollars

Transportation fares 4,468

Local transportation 448

Vehicle rental 557

Vehicle operation 11,755

Accommodation 6,196

Food and beverages from restaurants and bars 9,752

Food and beverages in stores 3,975

Recreation and entertainment 3,269

Clothing 4,507

Other costs 1,739

Tourism domestic demand 46,667

Non-resident tourism spending in Canada, 2012


International Travel Survey expenditure categories millions of dollars

International fares 3,288

Transportation in Canada 1,690

of which:

a. air transportation 54

b. other commercial transportation 482

c. rented car 513

d. private transportation 362

e. unknown transportation 278

Accommodation 4,434

Food and beverages 3,274

Recreation and entertainment 1,351

Other 2,005

Tourism international demand 16,342

Supply and Use Tables and TSA product

aggregations


Level of

aggregation

Number of

goods and

services and

primary

inputs

Canadian

Tourism

Satellite

Account

Commodities

Published >400 25

Working level >400 >200

Products of the Canadian Tourism Satellite Account


Total Transportation

Passenger air

Passenger rail

Passenger water

Interurban, charter and tour bus

Taxis

Vehicle rental

Vehicle repairs and parts

Vehicle fuel

Total Accommodation

Hotels

Motels

Camping

Other accommodation

Total Food and Beverage Services

Meals from accommodation

Meals from restaurants

Alcoholic beverages from accommodation

Alcoholic beverages from restaurants

Meals and alcoholic beverages from other tourism industries

Total Other Tourism Commodities

Recreation and entertainment

Travel agency services

Convention fees

Single purpose consumer durables

Total Other Commodities Purchased By Tourists

Groceries

Beer, wine & liquor from stores

Urban transit & parking

Miscellaneous commodities

Tourism Industries

• Tourism industries in CTSA, • comparable with IRTS 2008

• Except real estate services for second homes, rental and leasing of recreational and sporting goods

• Tourism industries produce tourism and non-tourism commodities

• Similarly, non-tourism industries produce non-tourism and tourism commodities

• SUT reveal these structural details


Supply and Use Tables – TSA industries


Level of

aggregation

Number of

industries

Canadian

Tourism

Satellite

Account

Industries

Published 236 14

Working level 236 77

Tourism Industries of the Canadian Tourism Satellite

Account

Transportation: Air, water, rail, bus, taxis, vehicle rental

Accommodation: Motels, hotels, camping grounds, and other accommodation

Food and beverage services


Travel services

Other industries (produce commodities purchased by visitors such as groceries, alcoholic beverages from stores, and other miscellaneous items)

All above exclude non-tourism sub-industries• Rooming and boarding, catering, agents and promoters


Measuring tourism supply

• Tourism domestic supply defined as the total production in Canada of tourism goods and services

• Note that tourism domestic supply excludes:

• Services in Canada from non-resident producers

• example, passenger air from NR carriers in Canada not included

• Tourism services from NT industries are also excluded

• example: accommodation services from rooming houses

• assumption here is that rooming houses serve only non-visitors

• Aim of these exclusions:

• to reconcile better with estimates of internal tourism consumption


Structural details on product outputs by industry -

example


Table 1 Tourism domestic supply of the food services and drinking places industry - hypothetical example

Limited- Drinking

service Special places

Industry Full-service eating food (alcoholic

total restaurants places services beverages)

Commodity I ii iii iv v

Distilled alcoholic beverages, licensed premises 1,200 800 0 0 400

Beer, including coolers, licensed premises 1,600 1,000 0 0 600

Wine, including coolers, licensed premises 900 500 0 0 400

Retailing margins 440 50 40 300 50

Royalties and license fees 380 50 30 300 0

Non-residential rents 40 10 10 10 10

Other amusement and recreation services 40 10 12 10 8

Other accommodation services 30 10 10 0 10

Meals (outside home) 13,200 6,000 4,000 3,000 200

Other personal services 40 10 10 10 10

Rental, other machinery and equipment 80 20 20 20 20

Domestic supply (gross output) at basic prices 17,950 8,460 4,132 3,650 1,708

Of which:

Tourism domestic supply 13,990 8,330 4,032 1,628

Note: Tourism commodities and elements of tourism domestic supply in shaded areas.

Food services and drinking places industry (and sub-industries)

millions of dollars


Toward reconciliation

Several calculations are made to make demand consistent with supply to fill data gaps and to adhere to SNA and international TSA standards

Domestic portion of international trips

Canadian fares of international trips

Domestic tourism of the residents of the territories

Travel agents commission

Tourism single-purpose consumer durable goods

Demand to supply reconciliation

Measuring tourism demand – Canadian Tourism

Satellite Account, 2012


(millions of dollars)

Survey data

Domestic demand (TSRC) 46,667

International demand (ITS) 16,042

62,709

Additions

Canadian fares of outbound international trips 9,043

Domestic demand (territories) 253

Pre-trip expenditures 3,493

Travel agents commissions 4,078

Total of additions 16,867

Demand to Supply reconciliation 584

Tourism Demand 80,159

Reconciling demand and supply

• Reconciliation in CTSA unlike in SUT because tourism demand less than tourism supply

• Before confrontation however, several adjustments made to bring two closer together• Restrict measure of domestic supply

• Aggregate commodities so definitions are same

• Convert to purchaser price valuation

• Coverage adjustments for items not in travel surveys

• Even after these adjustments demand may be “too high” or “too low” given the supply


Demand and supply reconciliation

• Supply and demand of tourism commodities compared at a fairly detailed level

• Differences lead to deeper questioning and investigation of the concepts, definitions, sources and methods of the data on both sides, to attempt to explain the difference.

• The demand and supply side estimates are adjusted-guided by • the results of further investigations

• relative confidence in the supply versus the demand side estimates


Tourism demand to supply (product) ratios

important tool in reconciliation exercise


0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Passenger air

Passenger rail

Passenger water

Interurban, charter and tour bus

Taxis

Vehicle rental

Vehicle repairs and parts

Vehicle fuel

Accommodation

Food and Beverage Services


Travel Services

Convention fees

Pre-trip expenses

Other commodities

Tourism demand to supply (commodity) ratios, CTSA 2012

Demand to supply ratio


Demand and Supply Reconciliation - Accommodation - 2012

$ millions

Survey data

Domestic demand from the Travel Survey of Residents of Canada 6,196

International demand from the International Travel Survey 4,434

Adjustment/additions to survey data

Domestic Demand (Territories), Travel agents Commisions, and Accommodation

spending associated with nights spent in homes of friends and relatives 52

Total tourism demand before reconciliation with supply 10,682

Total Supply 12,474

Tourism Commodity Ratio (Total Demand / Total Supply) before reconciliation with Supply 85.6

Reconciliation adjustment 77

Total tourism Demand after reconciliation with Supply 10,759

Total Tourism Demand Published, CTSA 2012 10,759

Total Supply 12,474

Tourism Commodity Ratio (Total Demand / Total Supply) after reconciliation with Supply 86.2

Tourism’s economic contribution

• Measure the direct effects of visitor spending on industry

value added at basic prices in CTSA

• Lack information on visitor spending by industry

• Structural details of SUT used to convert visitor spending

by commodity to industry basis

• Then determine fraction of industry gross output sold to visitors

• Apply this ratio to industry value added


GDP directly attributable to tourism:

$33.6 billion in 2012; 2.0% of economy-wide GDP


0

10

20

30

40

50

60

70

80

90

100

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1,000.0

2,000.0

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5,000.0

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Perc

en

t

$ m

illio

ns

Tourism Gross Domestic Product, CTSA 2012

Tourism GDP (left axis) Tourism share of total industry GDP (right axis)

Demand and supply reconciliation

• The Demand-Supply reconciliation is an important step in

the final derivation of demand estimates in the CTSA.

• The process performs a check on the various data

sources.



Thank you

www.statcan.gc.ca

Documents

Tourism Satellite Account - United Nations · Regional Workshop on the Compilation of the Tourism Satellite Account June 20, 2017 ... catering, agents and promoters